WITH more than 1,300 credit cards available on the market, consumers can face a baffling choice when it comes to picking the most appropriate one for their needs.

But you can narrow the choice considerably by deciding whether your primary consideration is paying off the balance in full each month.

Credit card users are split roughly 50-50. Interest rates will always be the top priority, but for people who like to clear the slate on a regular basis any "extras" on offer, such as free insurance, cash-backs or other reward schemes, are also likely to influence the decision.

Gold and platinum - and more recently black - cards may have a certain status symbol appeal but you should ask yourself whether the benefits outweigh any annual fee.

With over 60m credit cards in issue and around half the population having, on average, two cards each, credit card usage plays a huge part in most people's financial lives.

But new statistics show that not shopping around and paying too much interest on outstanding credit card balances costs cardholders as much as £500m a month.

"Apathy is obviously a contributing factor as is the perception that switching cards is a hassle and can be difficult and drawn-out," says Michael Senior, head of personal loans and credit cards at The MarketPlace, which recently introduced an online broking service giving access to over 100 market-leading credit cards

"With so many cards now offering zero per cent introductory offers, and standard APR rates starting from as low as eight or nine per cent, there's no real reason for cardholders with outstanding balances to be languishing on cards paying interest rates of up to 20 per cent or more.

"The UK credit card market is crowded and extremely competitive. It's not a case of `one card fits all'. Like most financial products, there's much more to consider than just the headline rate and many consumers are paying too much on their borrowing."